FAQ

FAQ

Frequently Asked Questions

Finance

Before you travel down here to go house hunting in the sun with us, you must of course know your budget. We will first of all clarify with you what amount you have available to buy a house for – for example, via savings or equity release on your current house.
You can borrow 70% of the price of the house from the Spanish banks, so you pay 30% and the transaction costs, which are typically 11-12% – or approx. 2.5% when we do it in a corporate form for you.
Contact us here to learn more about the attractive corporate form.
We obtain mortgage offers from several competitive banks and provide pre-approval so that you can make a move once we have found the right house for you.

Yes we obtain mortgage offers from several competitive banks and provide pre-approval so that you can make a move once we have found the right house for you.

In Spain, the buying cost is roughly 10 – 12% of the purchase price and it breaks down as:

  • Legal (around 1.2%)
  • Notary & Land Registry (1%)
  • Stamp duty: only for new properties (1%)
  • IVA (VAT) on new properties (10%), Transfer Tax on resales (8%)

    Mortgage commissions can vary and it is worth bearing in mind that if you purchase with a mortgage, there may be some additional costs to pay such as notary, registry fees, and stamp duty.

We will first clarify with you what amount you have available to buy a house for – for example, by savings or equity release on your current house.

You can borrow 70% of the price of the house from the Spanish banks, so you pay 30% and the transaction costs, which are typically 11-12% – or approx. 2.5% when we do it in a corporate form for you.

There are two types of bank accounts for foreigners:

  • Resident bank account: You can open an account in euros or in a foreign currency (depending on what the bank offers).

  • Non resident bank account: If you don’t have an NIE card and you come from another country, you are considered nonresident. Based on the regulations of the Bank of Spain, nonresidents can hold bank accounts in euros or in foreign currency. As identification, you must have a valid passport or the ID number of your country of origin. You also have to justify your nonresident status when you open the account. This is because for a nonresident account, the bank does not withhold a percentage of the interest earned. Generally every six months, the bank does a check to confirm your nonresident status. If you acquire resident status any time after opening the account, you must notify the bank and give them your NIE. The fees for a resident account are cheaper than for a nonresident account.

law and rules

When you buy property in Spain, the buying cost is roughly 10 – 12% of the purchase price and it breaks down as:

  • Legal (around 1.2%)
  • Notary & Land Registry (1%)
  • Stamp duty: only for new properties (1%)
  • IVA (VAT) on new properties (10%) / Transfer Tax on resales (8%)
  • Mortgage commissions can vary and it is worth bearing in mind that if you purchase with a mortgage, there may be some additional costs to pay such as notary, registry fees, stamp duty.

An extensive insurance policy in Spain is a must, even if you only have a holiday home, car or investment property in Spain. It is a legal requirement to have a Spanish buildings insurance policy with a property mortgage loan, as this is the bank’s guarantee if something should happen to the property. Some banks insist on their clients taking a life assurance policy as well, especially senior property owners. Although this is not compulsory, many banks will insist on it and will not approve the mortgage without it.

Accordion Content

Other

Yes Veestate we can help with all legal part of buying and selling your home. Our legal team is here to provide professional care.

Yes at Veestate we can help with our architect team to design your home fitted to your wished land we also take care of the land registry (Registro de la Propriedad), that there is appropriate planning permission, that the plot has no outstanding debts. There will be a surveyor or an architect ready to help out.

The area around Málaga is extremely sought after by tourists, and the number of tourists

increases annually by 4-5%

Spain is among the 10 countries in the world that receive most foreign investments

Spain is the country in Europe that has the third-most highly educated

 Spain is the world’s second largest tourist destination in terms of revenue

The Costa del Sol has an average of 320+ sunny days a year and the mildest winters in Europe

The local infrastructure is well-designed and well-developed in relation to the large and increasing number of people

The Costa del Sol is attractive to have a quality of life by good food, Multilanguage, beautiful sea and lakes, mountains to hike or skiing in the winter, variety of small white villages on short drive or the big city for all your needs.

Let's Find You Together the Place You Deserve

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